New Programs Will Let Renters Continue to Live in Foreclosed Property

I have received a number of calls recently from people that are renting their houses from a landlord, and have been timely paying their rent, only to receive a foreclosure notice from the landlord’s mortgage company. Usually, there is nothing to do- a foreclosure “cuts off” the rights of any tenants in the property. Once a foreclosure takes place, the tenants just have to move. Sometimes, if they can’t swing the deposit and advance rent for a new place, they can end up in a shelter, homeless.

Fannie Mae had unveiled a new program to allow tenants to sign a new lease with them, when Fannie Mae forecloses, and stay in the property. Freddie Mac is expected to unveil a similar program soon. Of course, your landlord’s mortgage may not be owned by Fannie or Freddie. If it’s not, you can at least call the Constable’s or Sheriff’s office to see how long you have to move before you are evicted. You may have other rights if you are a tenant; for more information go to http://www.hud.gov.

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